S&P lifts Beijing Enterprises view to stable

S&P said it revised the outlook on Beijing Enterprises Holdings Ltd. to stable from negative.

The agency also said it affirmed the company’s BBB+ long-term corporate credit rating, along with its cnA+ long-term Greater China regional scale rating, BBB+ long-term issue rating and cnA+ Greater China regional scale rating on the senior unsecured debt that Beijing Enterprises guarantees.

The outlook revision reflects an expectation that the company's parent, Beijing Enterprises Group Co. Ltd., will maintain its credit profile over the next two years, S&P said.

The agency said it believes the company’s importance to the Beijing municipal government has increased and the group's interest coverage will improve slightly after worsening in the past three years.

Beijing Enterprises Holdings is considered a core subsidiary of Beijing Enterprises Group given that it owns almost all the parent's cash-flow generating assets, S&P said.

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